Amtrak’s Rolling Stock Perspective: Development of

High-Speed Rail and Intercity Passenger Rail

Ken Uznanski & John Bennett

Amtrak

February 10, 2010

1

Background

• Amtrak is the national intercity passenger rail provider

– Congressionally chartered corporation (majority of stock owned by DOT) began operation in 1971 to relieve freights of common carrier obligation to provide passenger service

– Operates a 21,100 mile system, actively serving 517 stations in the US and Canada

– Carried 27.2 million passengers in FY 2009 (second only to FY 08)

• Services fall into three categories:

– Northeast Corridor (largely, but not entirely, Amtrak-owned infrastructure)

– Long distance routes (over 750 miles)

– Short distance routes (under 750 miles)

• 70% of our train-miles run on railroads other than Amtrak:

– BNSF Railway (6.69 million train-miles)

– Union Pacific Railroad (6.09 million train-miles)

– CSX Transportation (5.85 million train-miles)

– Norfolk Southern Railway (2.36 million train-miles)

– Canadian National Railway (1.45 million train-miles)

– Metro-North Commuter Railroad (1.34 million train-miles)

Amtrak pays host companies for incremental costs and incentives – about $110 million in FY 2009

Top six partners,

in terms of annual

train mileage

2

The Year in Review

• Ridership and revenue for 2009 were surprisingly strong

– Not as amazing as 2008 – but still the second-highest total (27.2

million) in our history

• We undertook a major capital investment program and worked

with state partners to initiate the first investment programs as part

of the High Speed Rail and Intercity Passenger Grant program

• Service developments are ongoing

– Extended Northeast Regional service to Lynchburg, VA

– Extended a second Cascades train to Vancouver

– Added 3 new stations (Leavenworth and Stanwood, WA, and New

Buffalo, MI)

3

New Initiatives

• Fleet needs

– Fleet plan in preparation; will address replacement and major growth needs; will be announced in February, 2010

– Have issued RFPs to procure 130 single-level cars (Heritage fleet replacements), 20 single-level cab cars, and 20 electric locomotives

• Safe - 2 - Safer – industry-leading new risk-reduction program designed to improve safety through the promotion of a more collaborative working environment

• Positive Train Control (PTC) implementation – Amtrak has committed to an aggressive schedule to install PTC on Amtrak-owned lines by 2012 – 3 years ahead of the Federal deadline

• Northeast Corridor Environmental Impact Statement (EIS) – working with the FRA to prepare a programmatic EIS for main stem and key feeders of the NEC

• Financial and strategic planning

– Adopted a number of Key Performance Indicators to track operational, financial and customer service effectiveness

– Produced strategic guidance and a five year financial plan

– Final agreement on PRIIA-mandated metrics and standards

4

Passenger Rail Investment and Improvement Act—A New Era

– Clear vision for Amtrak and intercity passenger rail within the national

transportation scheme

– Establishes a new partnership between Federal government (DOT and

Amtrak), states, and host railroads:

States plan rail service

US DOT integrates this state planning into a national system

Federal government provides capital funding

Amtrak operates national network, helps design and operate new

corridor services

– PRIIA grant programs to develop high speed and intercity passenger rail

have been funded at about $10.6 billion

- $8 billion in stimulus funding

- $2.5 billion in FY 10 appropriation

- $90 million is available from FY 09 appropriation

- About $1.9 million in FY 08 appropriation funding is still available

5

ARRA – High-Speed Rail and Intercity Rail Investment

• American Recovery and Reinvestment Act (ARRA)

Funds the PRIIA vision and grant programs – no state match required for ARRA funding

Funding flexibility acknowledges different stages of development

Grants require enduring state leadership and commitment - operating and capital funding

Grant competition demands results – public benefits

• Amtrak has many roles

– Grant recipient/partner

Can lead or partner with states for funding

Can help bridge projects across multiple states

– Service planner

– Liaison between other partners

– Service provider (an umbrella term that covers a lot of responsibilities)

6

High Speed and Intercity Passenger Rail Grant Program

• Amtrak partnered with more than 30 states to support

the first round of grant requests

• Total of more than 100 projects

• Vast majority of projects involve improvements to

Amtrak-operated services

7

Evolving into New Roles – State and Federal Partners

• States will be lead partners

– Create rail plans

– Function as federal grant recipient

– Provide operating and capital funding for short distance Amtrak services

- Provide 20% capital match (stimulus funds

excepted)

- Under PRIIA, Amtrak must treat shortdistance routes uniformly

- States who do not fund their routes today must begin to do so by October 16,2013

• FRA leads national policy

– National rail plan

– Safety and performance standards

– Administers grant program

– Facilitates among partners – states, Amtrak, freights

Amtrak’s Illinois Zephyr

8

Evolving into our New Roles - Amtrak

• Amtrak facilitates intercity rail operations and development

– Operator of the national network

- Only company in America with global view of rail network

- Longstanding relationships with all major Class I railroads

- Only high speed intercity provider in North America

- Only company that operates passenger trains over every major U.S. railroad

- All track approved for 110+ mph service in North America maintained by Amtrak

– Planning services for states

- Familiar with stringent Federal regulatory requirements

- Understand operating, engineering needs of HSR in America

- Can serve as liaison, coordinating node for multi-state partnerships

– Service provider for 15 state-supported corridor services

– Trusted by hosts to operate safely

– Workforce possesses unparalleled qualifications and expertise

– Tactical planner of intercity passenger services

• Amtrak is focusing on supporting state development efforts and emerging high

speed corridors

9

Successful Collaborations – a Glance at Some Results

• Pennsylvania – Keystone Corridor (104 miles)

– Partnership between Amtrak and Commonwealth of Pennsylvania to raise train

speeds and improve Philadelphia-Harrisburg service

– Restored electrified service and conferred additional benefits

- Top speeds of 110 mph

- Trip time cut to 95 minutes

- Increase from 11 to 14 daily Amtrak trains in each direction

– Initial partnership invested $145M (split between Amtrak and state)

• Michigan Line (Amtrak-owned segment 96 miles)

– Part of the Chicago-Detroit/Pontiac line (304 miles)

– Six daily trains

– New positive train control system (joint Amtrak/FRA/state project) allows 95

mph service on Amtrak-owned lines, will soon allow 105 mph operation

10

The Northeast Corridor: Incremental Development on a Shared-use Route

Pre-1976 Today

Signaling and

control

About a fifth of the

NEC signaled for

bidirectional

movement

Most signaling

bidirectional,

Automatic Train Stop

universal, ACSES

(PTC) in service

Interlockings

104 of 124

mechanically

operated

No mechanical

interlockings remain

Grade crossings 49 grade crossings11 grade crossings

(6 smart crossings)

Electrified segments DC to New Haven Whole Corridor

Maximum speed About 110 mph* 150 mph

Total daily

passenger trains (All

carriers)

1,199 1,999

*Accounts vary

Acela Express on Canton Viaduct

• Amtrak took over NEC in 1976

• At the time, physical condition and

service quality were poor and getting

worse

• Two major improvement programs

followed

•NECIP (1977- early 1980s)

•NHRIP (1994-2000)

• Today’s service is a legacy of these

(and preceding) rounds of investment

11

Realizing a Dedicated High Speed Route

• Amtrak is seeking to operate any major dedicated HSR project, if funding and support are available

• We have the experience needed for an HSR project

– Electrified services

– Operations

– Maintenance

– Planning and engineering

• Would envision ourselves working with other partners

– Amtrak’s principal interest is operational

– We bring planning skills, experience, and support networks such as reservation systems

– Our workforce is a tremendous asset – largest collection of talented, skilled railroad workers with high speed experience in North America, existing collective bargaining agreements, and strong partnership with labor organizations

– Interconnectivity is important – will need to integrate new and existing services

• Some proposed high speed routes include Desert Xpress, California and Florida HSR projects

– Must be integrated with national system

– Amtrak’s access rights apply nationwide – not just to existing system and routes

12

The Way Ahead

• Amtrak supports the Administration’s commitment to a program of incremental development, while advancing the next generation of high speed services, where possible

• Amtrak’s role is vital – we are the national railroad, and an instrument of Federal policy to deliver passenger service across the country

– Longstanding relationships with host railroads

– Planning capabilities in great demand

– Unparalleled experience with planning and operating of passenger service under American conditions

- Regulatory requirements

– ―Software‖ for service – experience, people, skill sets, existing systems

• America’s 21st intercity passenger rail system will be built on partnerships

• Collaboration between states, US DOT, Amtrak, hosts, suppliers, and others key to success

13

Amtrak Fleet Plan

• Intercity Passenger Rail in United States has unprecedented

opportunity that must be addressed

• Amtrak, as the nation’s passenger railroad, will play a vital role

– Amtrak’s fleet is and will be at the heart of its ability to deliver

competitive service, impacting all aspects of Amtrak services

– History of underinvestment has constrained Amtrak’s ability to deliver

modern and reliable services our customers deserve

– Average age of equipment in the existing Amtrak Fleet is approaching

25 years

– Essential need to develop a strategy for recapitalization of the fleet to

sustain and grow the business

- Develop a strategy that rebuilds and stabilizes supplier base

14

Context of Amtrak Fleet Plan

• Fleet Plan is based upon a thorough understanding of intercity

passenger rail in the US

– Conservative

– Flexible

– Scalable

• Addresses major business lines

– Northeast Corridor

– Long Distance

– State supported/corridor services

• The Amtrak fleet plan is a living document

15

Fleet Plan—Equipment Life Policy

• Amtrak defined equipment life policy

– Careful analysis of needs throughout the organization was performed

- Marketing/Customer focus

- Mechanical

- Financial considerations

– Commercial life goals for each fleet type developed for fleet recapitalization

• Commercial life goals:

– Electric Locomotives - 25 years

– Diesel Locomotives - 20 years

– Single Level Coach - 30 years

– Bi-Level Coach - 30 years

– Tier I Trainset - 25 years

– Tier II Trainset - 20 years

• Actual life of equipment will depend on tactical requirements

16

Current Fleet Composition and Characteristics

• Acela—20 train sets (including 120cars): (1999-2000); 1.2 million miles

• Amfleet I—412: (1974-1977); 3.8 million miles

• Amfleet II—122: (1980-1981); 5.1 million miles

• Superliner I—249: (1979-1981); 5.5 million miles

• Superliner II—184: (1994-1996); 2.9 million miles

• Horizon—97: (1989-1990); 2.4 million miles

• Viewliner—50: (1995-1996); 2.5 million miles

• Surfliner—41: (2000-2002); 1.1 million miles

• Talgo: 2 trainsets (including 29 cars): (1999); 1.7 million miles

• Heritage—92: (1948-1956); unknown mileage

• Metroliner—17: (1967); unknown mileage

17

Demand Modeling for Amtrak Business Lines

• Demand forecasting performed on major Amtrak business lines

– Northeast Corridor

- Master Plan

- Acela

– Long Distance

- No additional services

– State/Other Corridors

- Existing services and probabilities of future growth

- To be modified in future based upon PRIIA and ARRA

implementation

18

Amtrak Fleet Acquisition Plan

• Provides for a smoothed acquisition of high volume vehicle types

• Grouped acquisition of lower volume vehicle types

• Steady state procurement

– Approximately 65 single level cars per year

– Approximately 35 bi-level cars per year

– 70 electric locomotives under present procurement

– Begin acquisition of 265 diesel locomotives at rate of 25 per year

– Replace switcher fleet at rate of 10 per year

• Actual batch sizes and composition will be determined as necessary

• Coordination with PRIIA Section 305

– Baseline that is scalable to accommodate state needs

19

Acquisition Plan through 2025 (14 years)

• 780 single level cars

• 420 bi-level cars

• 70 electric locomotives

• 264 diesel locomotives

• 25 high speed trainsets

20

Funding Options Under Consideration

• Direct Federal appropriations

– Amtrak

– Another entity defined through PRIIA Section 305

• Federal loan programs, if approved by the Secretary of US DOT, with a variety of potential financial support

– State partners

– PRIIA funding

– Ridership/revenue increases

– Lease income

– Annual appropriations

• Commercial financing

21

Section 305 Next Generation Equipment Committee

• Purpose:

– To design, develop specifications for, and procure standardized next generation corridor equipment

• Functions:

– Determine number of different types of equipment required

– Establish a pool of equipment for use on routes funded by participating states

– Subject to agreement, utilize Amtrak-provided services to design, maintain and remanufacture equipment

• Cooperative Agreements

– Amtrak and participating states may enter into agreements for funding, procurement, remanufacture, ownership and management

– May apply to current or new equipment

– May establish a corporation to perform these functions

• Participants

– Amtrak, States, FRA, host railroads, equipment manufacturers, other operators as appropriate

22

Section 305 Executive Committee

• Initial Meeting of Executive Committee held January 13-14

• Executive Committee Membership

– Amtrak

– Federal Railroad Administration

– States (CA, GA, IA, LA, MD, MO, NC, NY, WA, WI)

• Officers

– Bill Bronte, California - Chair

– Mario Bergeron, Amtrak - Vice-Chair

– DJ Stadtler, Amtrak - Treasurer

– Rod Massman, Missouri - Secretary

• Subcommittees

– Financial

– Technical

– Administrative

23

Section 305 Deliverables

• First Year Deliverables

– Complete single-Level Specifications for corridor services

– Complete bi-Level specifications

– Diesel locomotive specifications

– Develop ownership and organizational structures

– Determine appropriate procurement strategies

– Fleet management strategy

– Be prepared for initial procurements

• Rolling stock procurements using federal funds will be subject to

―Buy America‖ requirements

24

Overall Amtrak Fleet Strategy

• Replace existing fleet including secular growth

• Support a domestic supplier market with regular procurements

• Augment fleet size as existing network grows

• Support state-supported growth through collaborative fleet

acquisitions consistent with Section 305 specifications

• Support new high speed rail corridor growth through operating

support and fleet acquisition as determined by the opportunities